Peer-to-peer trading development will not end traditional trading, claims group
The future of face-to-face trading between Lloyd's brokers and underwriters has been thrown into question again as the market's electronic trading reform gathers pace.
Fresh concerns have been raised about the future of face-to-face trading after G6, the group of top managing agents leading electronic reform, announced that by the end of this month it hoped to perform all contract endorsements using its Acord standard messaging.
But G6 has denied that further development to its peer-to-peer system will lead to the end of traditional trading.
Sue Langley, chairman of G6 and chief operating officer at Hiscox, told Insurance Times: "All data can be sent electronically, whatever the class. The complexity is just a measure of the face-to-face interaction that is needed after that.
"This will never be replaced, although some could be done by phone."
Langley insisted that endorsements should be a "real win" for brokers.
"Endorsements are changes to a policy once it is bound/in force and can be anything from a simple name change to a complex change like adding a new oil rig," she said.
"It is a real waste of time for brokers to have to queue at the box for simple changes, although complex ones may require more discussion. [Electronic trading] will enable them to send [endorsements] from the office and concentrate on the placing negotiations."
Meanwhile, Hiscox is set to create its own trading floor to provide a confidential environment for complex negotiations between its underwriters and brokers.
Hiscox said the trading floor was not intended to replace the underwriting box at Lloyd's, but would allow brokers to make appointments to see underwriters either at the box or in a private area at Hiscox.